NY Regulators Reject Entergy Nuclear Spinoff

03/26/10 6:06AM

New York utility regulators have rejected Entergy Corporation's plan to spin off its six nuclear power stations into a separate company.

New York's Public Service Commission acted yesterday after its staff determined the deal wasn't in the public interest. It said the resulting company - Enexus Energy Corporation - could be financially shaky.

New Orleans-based Entergy had offered concessions that would have reduced the spinoff's initial debt and restricted dividend payouts, among other things. But that wasn't enough to overcome the commission's concerns.

In addition to Vermont Yankee, Entergy operates the FitzPatrick and Indian Point 2 and 3 plants in New York, Pilgrim Nuclear in Massachusetts, and Palisades Nuclear in Michigan.

An Entergy spokesman says the company is disappointed and won't immediately comment on its next steps.

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